TipRanks: Here are the favorite tech stocks of top analysts for the second half

Published Wed, Jul 5 20171:28 PM EDTUpdated Tue, Aug 1 20173:44 PM EDT

Harriet Lefton of TipRanks

TipRanks , a service that ranks Wall Street analysts, identified the top players in technology coverage and found which stocks they like for the second half of 2017. We use a natural language-processing algorithm to rank analysts based on two factors: Average return of buy-sell recommendations Success rate of buy-sell recommendations TipRanks' stock screener allows you to screen for "best analyst consensus" stocks in the technology sector, revealing stocks with a "Strong Buy" best analyst consensus rating. We combined the screener's insights with a database scan to find the most popular tech stocks by top analysts right now. Here are five favorite stocks from the best-performing technology analysts for 2H17. 1. Alphabet Inc. ( GOOGL ) — This tech giant has a very bullish outlook from the Street. In the last three months, 18 out of 22 top analysts have published buy ratings on the stock. The 12-month average price target from only the best-performing analysts is an impressive $1,075, representing 17 percent upside from Monday's close. Top analysts have been quick to reiterate their support for the stock following the EU's record $2.7 billion antitrust fine, which GOOGL plans to appeal. Five-star Aegis Capital analyst Victor Anthony says the fine is immaterial for GOOGL. He points out that Alphabet can easily pay the fine from the $7 billion it generates in quarterly free cash flow, as well as its huge $92 billion cash pile. The analyst wrote, "We were more concerned that the EU could force large scale business model practice or structural changes to Google. We did not see that with this decision." Anthony reiterated his GOOGL buy rating with a $1,090 price target (18 percent upside) on June 28. 2. RingCentral ( RNG ) — Cloud-based phone system company RingCentral has received only buy ratings from top analysts in the last six months. Analysts are predicting, on average, upside of 7 percent from Monday's closing price of $35.55, pushing the equity to $38. Top SunTrust Robinson analyst Terry Tillman initiated coverage on RNG on June 26 with a $47 price target (32 percent upside from current share price), listing multiple positive catalysts on the stock including international expansion and increased customer retention. 3. Match Group Inc. ( MTCH ) — Based on six top analyst ratings, this online dating company has a "strong buy" analyst consensus rating and an average analyst price target of $22. This translates into big upside potential of 25 percent over the next 12 months from Monday's close at $17.30. Five-star Jefferies analyst Brian Fitzgerald says he "super likes this setup" and tells investors "we are buyers on the dip." MTCH is currently trading at $17 down from over $19 at the beginning of June. "We feel the discount is unwarranted given MTCH's consistent double-digit rev growth and strong margin profile, which places them in the top quartile of our coverage," says Fitzgerald. He called the stock a "top mid cap pick" and reiterated his buy rating on June 21 with a $23 price target. 4. WideOpenWest ( WOW ) — The sixth-largest internet services provider in the U.S. has just gone public with shares priced lower than expected at $17. This is the first telecom initial public offering in 2017. Five top analysts initiated coverage of WOW on June 19, all with buy ratings and an average analyst price target of $21. This translates into a significant 22 percent upside from Monday's close at $17.42. One of these top analysts is Credit Suisse's Omar Sheikh . He initiated coverage with a buy rating and a "modest" $20 price target, saying: "We consider the equity story compelling, with the stock offering >$250m growth in levered FCF through 2020, driven by growing demand/pricing power for broadband connectivity and declining capital intensity." Likewise, SunTrust Robinson analyst Gregory Miller is predicting "strong" results and increasing margins, an outlook reflected by his bullish $24 price target. 5. Facebook ( FB ) — Social media giant Facebook has received 26 buy ratings and only three hold ratings in the last three months. The average analyst price target of $169 shows that top analysts believe the stock can still climb 14 percent from Monday's closing price of $148.43. Five-star Canaccord Genuity analyst Michael Graham is impressed by Facebook's multifaceted revenue growth story. He says, "FB should continue to power through consensus estimates with a hefty tailwind from Instagram and may benefit from SNAP comparisons." On top of this, Graham adds that Facebook Video alone could bring in gross margin of over $2 billion a year due to an increasing number of videos as well as "more premium and higher priced video ad impression growth." He reiterated his FB buy rating on June 14 with a $175 price target (18 percent upside potential). Editor's note: TipRanks is a fintech company that ranks analysts and financial bloggers based on their picks' performance. This piece highlights analysts with great track records who are not necessarily from the biggest firms.

Average return of buy-sell recommendations
Success rate of buy-sell recommendations

TipRanks' stock screener allows you to screen for "best analyst consensus" stocks in the technology sector, revealing stocks with a "Strong Buy" best analyst consensus rating. We combined the screener's insights with a database scan to find the most popular tech stocks by top analysts right now.

Here are five favorite stocks from the best-performing technology analysts for 2H17.